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BD Hotels and Blackstone skip hotel mortgage payments

BD Hotels has stopped making payments on their mortgage on the 600-room Watson Hotel on Manhattan’s West Side. Now, HSBC, which provided the developer with a $42.5 million loan in 2011 to finance its leasehold on the hotel at 440 West 57th Street, is looking to sell the non-performing loan. The loan matures April 1 of next year and has an unpaid principal balance of $33.9 million, according to the Real Deal.

  • Spotting a trendBlackstone has skipped a payment on a $274 million hotel loan. The debt is secured on four hotels in Chicago, Philadelphia, Boston, and San Francisco, which the US private equity group acquired in 2016 from Club Quarters, a membership-based hotel network, the Financial Times reported.
  • Be Smart: Some of the debt is trading at values that suggest the investors do not expect to make a full recovery. For example, the lowest-rated portion of the loan secured on the Blackstone hotels changes hands for 76 cents on the dollar, down from 100 cents at the start of March. 
  • Worth Noting another auction: The tony Mark Hotel at 25 East 77th Street recently went into default, and the special servicer on the hotel’s $115 million commercial-mortgage backed securities loan scheduled a UCC foreclosure auction. [FT+TRD]

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